Germany proved an exception to the rule of growing global economic gloom as a closely watched business confidence indicator rose on Thursday and the country’s central bank governor said expectations of eurozone interest rate cuts reflected “wishful thinking”.

The surprise rise in the Munich-based Ifo institute’s business climate index, from 103.0 in December to 103.4 this month, reflected greater optimism in Europe’s largest economy about the next six months. German industry – enjoying a renaissance on the back of exports to emerging market economies – has so far been unaffected by the global financial turmoil.